The new “flippening”: Bitcoin fees surpass block reward for miners
- With the advent of ordinals and the BRC-20 token, Bitcoin fees began to explode.
- Taproot has made it easy for “ordinals” to enter the Bitcoin blockchain.
- The mempool is being handled as designed, but as a result the price has been adjusted significantly higher.
- This makes it one, if not the highest transaction fee ever recorded.
- This could clean up Bitcoin’s security model. Will miners continue mining if block rewards decrease? Will they be sufficiently incentivized?
- Miners are receiving more rewards than block rewards for the first time since 2017. At block 788695, the miner was paid a fee of 6.701 ($193,075). At the same time, the block reward was 6.25 BTC.
- However, using the Bitcoin blockchain for payments comes with high fees, which is the work of the free capital market. If people want to keep issuing tokens via “ordinals”, they want to sell them for more than the issuing cost.
- 31.7% of miner revenue in the last 24 hours came from fees.
New “flipping”: Bitcoin fees surpass miner block rewards, first appearing on CryptoSlate.